Beat the orderbook blues
01 May 2007
In terms of price and lead time, it can often make sense for a terminal operator to buy second-hand, rather than new. Alex Hughes reports
With delivery cycles of 15 to 20 months for new equipment, Algeria’s Bejaļa Mediterranean Terminal (BMT Spa) could only have achieved its promised opening date by buying second-hand – a increasingly common situation with lengthening lead times threatening to stunt new terminal growth.
Bejaļa terminal spokesperson Adam Iskounen adds that opting for second-hand equipment also allowed BMT Spa to keep to its budget. Compared with new equipment, the second-hand ship-to-shore cranes and rubber-tyred gantries acquired by the terminal produced savings of 50 and 60 respectively.“In addition,when you start combining the savings on import duties and on amortisation costs,the overall savings are even greater,”he says.
Most of the equipment acquired by Bejaļa was built in the late 1980s and early 1990s, which means it is still comparatively youthful.The quay cranes were built by IHI (Japan) and Reggiane (Italy),while MGM was responsible for the RTGs.According to Mr Iskounen,there was a huge range of possible second-hand equipment to choose from.“We looked at many factors: age, physical structure soundness, geographic location, price and manufacturer’s reputation.However,you always have to make a trade-off between all of these parameters.”
He explains that, in general, spare parts are the biggest problem with second-hand equipment, closely followed by the ability, or lack thereof, to maintain the equipment in good operating condition.
“Our supplier,Portek Systems & Engineering,has been very helpful and supportive in this respect.With a good inventory of spare parts and a periodic preventive maintenance programme,we have been able to achieve more than 95% availability for production. Down time has been kept to an absolute minimum,”he says. In terms of spare parts, he notes that getting hold of structural components is not normally a problem. Electrical and mechanical parts are also generally easy to find, with a choice of originals, substitutes, or locally fabricated products available.
Electronic, hydraulic, and pneumatic parts (such as control cards and intelligent parts and components) are much more problematic. Mr Iskounen suggests that you either have to have the required spares at hand or, better still, upgrade to newer technology.
“You should always request a set of its spare original parts as part of the purchase agreement;otherwise you may be in for a host of issues down the road,”he says. Finally, he suggests that return on investment for second-hand equipment is faster, because of lower purchasing cost, potentially shorter depreciation schedules and overall lower annual depreciation amounts.





